Mumbai, June 3 -- Germany's services sector saw business activity fall for the second consecutive month in May, according to the latest S&P Global PMI survey. The headline Services PMI Business Activity Index rose slightly to 48.1 from April's 46.9, but remained below the 50.0 threshold, signalling contraction.
Weak demand, higher energy costs, tighter financing conditions, and uncertainty weighed on activity. New business declined for the third month in a row, while export orders fell at the steepest pace in a year. Backlogs of work continued to shrink, and firms cut staff for the fifth straight month, though job losses were modest.
Cost pressures stayed high, with input price inflation close to April's three-year peak, driven by energy,...